Karachi April 22 2024: In a landmark development, Pakistan Stock Exchange (PSX) has signed a collaborative understanding with LSEG (London Stock Exchange Group) on Environment, Social and Governance (ESG).
Under this mutual understanding, both companies will work to develop a suite of standardized ESG data tools that can be used by PSX listed companies for their ESG data reporting, according PSX press statement received here.
This understanding benefits PSX and listed companies in that the platform would not only provide ESG scoring but also enhance the visibility of Pakistani companies on the international ESG radars, it said adding the arrangement would also help lay down the groundwork for an ESG Index planned by the PSX in the future.
Aligned with PSX’s vision on ESG, this development is a major link in the chain of steps taken by the Exchange in its ESG journey.
Through this collaboration, PSX lays down the groundwork to encourage listed companies in adopting ESG reporting in line with global standards.
Moreover, it augments the step taken by PSX in the shape of the ESG Taskforce established along with key stakeholders to bolster the adoption of ESG standards by listed companies. In the near future, PSX also plans to hold training sessions in collaboration with LSEG to create the necessary awareness and build capacity for listed companies on ESG reporting.
Speaking on the signing of the mutual understanding with LSEG, MD & CEO PSX, Farrukh H. Khan said that the understanding makes available a comprehensive suite of services that would be offered by PSX in the ESG domain for listed companies.
He said, the collaboration was aligned with PSX’s vision to elevate the ESG journey for listed companies to the next level.
On the occasion, Managing Director, Central and Eastern Europe, Middle East and Africa, LSEG, Nadim Najjar said this collaboration marked a significant stride in joint efforts to advance ESG reporting and practices. “Our goal is to support companies in Pakistan to foster a more sustainable and responsible business environment,” Najjar added.
Speaking on the occasion, Chairperson PSX, Dr Shamshad Akhtar said, PSX could learn a lot from the London Stock Exchange Group’s experience and its efforts to promote sustainability and responsible investment.
She desired PSX to encourage listed companies to adopt and prioritize sustainable development through ESG by focusing on reducing carbon emissions in our industry as quickly as possible, promoting social goals, and importantly, supporting good governance.
On the occasion, Chairman Securities and Exchange Commission of Pakistan (SECP), Akif Saeed highlighted the positive integration of sustainability into capital market frameworks, anticipating enhanced global ESG scoring accessibility.
SECP’s forthcoming ESG Disclosure Guidelines and the ESG Sustain portal launch this year will further reinforce measures to sustainability and collaboration for a resilient market, he added
